Question

Which of the following is not the service unit in case of transporter carrying goods?

• A. Cost per km
• B. Cost per tonne-km
• C. Cost per quintal-km
• D. Cost per passenger-km

Hint:

Passenger-km is for people transport, tonne-km is for goods.

Answer 1

The Correct Option is D

In transport costing, the choice of composite units varies based on the service type. For freight transport, costs are typically quantified using tonne-kilometres or quintal-kilometres, indicating the expense of transporting a specific weight over a given distance. While 'cost per km' is broadly applicable, it's often used internally for vehicle kilometres. However, 'cost per passenger-km' is exclusively for passenger transport services, such as buses or trains, not for carrying goods. Consequently, 'cost per passenger-km' is an inappropriate service unit for a goods transporter. Therefore, the appropriate unit is 'Cost per passenger-km'.